Chinese EV manufacturer Nio Inc – ADR (NYSE: NIO) announced monthly deliveries for December highlighting the strong momentum the company is experiencing.
What happened: Delivery of Nio climbed 121% year-on-year to 7,007 vehicles in December, the company said in a release on Sunday. The total deliveries of the unit consisted of 2 009 ES8S, 2 493 ES6s and 2 505 units of its newly launched EC6s.
Consecutively, deliveries increased by 32.43% compared to the 5,291 vehicles delivered in November.
The company noted that for the ninth consecutive month, it has reported double-year-on-year growth.
“2020 was a challenging year for the whole world. Against this backdrop, NIO reached consecutive record highs and ended the year on a high note with remarkable December deliveries of more than 7,000 vehicles,” said William Bin Li. founder, chairman and CEO of NIO in a release.
For the fourth quarter, the company delivered 17,353 vehicles, representing an increase of 111% year-on-year.
The company’s previous management estimated that quarterly deliveries would be 16,500 to 17,000 units.
The growing recognition of Nio’s premium brand, competitive and compelling products and services, and a growing sales network have contributed to the strong performance, the company said in the release.
Nio noted that its battery-as-service scheme has been popular among its customers since its launch. After adding an option to provide a 100 kilowatt-hour battery pack, BaaS reached about 40% of its new orders in December.
In 2020, the company delivered 43,728 vehicles, an increase of 112.6% year-on-year.
Related link: Nine will match vehicle prices until January 10 with China’s plan of 20% EV subsidy in 2021
Why it’s important: Nio, which is a homemade EV company in China, has slowly and gradually become a larger part of the thinking as well as the market share in the hot Chinese market. The company continued to grow as a strong challenge for Tesla Ing (NASDAQ: TSLA) in China.
Nine domestic competitors Li Auto Inc. (NASDAQ: LI) reported monthly deliveries of 6,126 Li ONEs on Friday, representing an increase of 31.9% month-on-month and a year-on-year increase of 529.6%.
Tesla, which reports numbers by quarter but not by month, said on Saturday that deliveries rose to 180,570 in the fourth quarter, 29.6% higher than a year ago.
What’s next: The 2020 Nine Day planned for January 9 is the next catalyst for the EV manufacturer.
Nio has confirmed that it will launch a new sedan model on the fourth Nio Day, while also sharing the latest developments in autonomous driving and other core technologies.
“Striving by the spirit of ‘Always Forward’, the theme of the upcoming NIO Day, we will continue to invest in smart EV technologies, accelerate our new product development, expand our sales and service network and strive for the best holistic experiences our growing user community in 2021 and beyond, ”said Nio.
The price action: Nine stocks, which hit a high of $ 57.20 on November 24, have since retreated amid fears of unsustainable valuation and limited regulation in China.
The stock has managed to regain some of its lost momentum over the past few sessions.
The delivery update could support the upside in the run-up to the 9th Nio Day.
On Thursday, the stock closed at $ 48.74, up 0.74%.
Related link: Why Nio has a chance to become the ‘Tesla of China’
Photo courtesy of Nio
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